Electronic TradingIntraday Regulatory
Risk Mitigation

Managing MiFID II Order to Transaction Ratio (OTR) Compliance

High Cost of Reactive Compliance Demands A New Approach

Market participants face increased venue scrutiny and reporting of the ratio of unexecuted orders to transactions (OTR) posed by MiFID II RTS-9. The threat of fines or suspensions for exceeding venue-specific limits are meant to prevent disorderly trading conditions.

The traditional compliance approach – after-the-fact, manual review of venues’ end-of-day reports – is slow and costly. As such firms are demanding a more proactive approach.

Corvil Intelligence Hub delivers actionable insights to improve intraday management of OTR-related compliance risks. Leveraging live trading order lifecycle data and advanced analysis, Intelligence Hub provides venue-aligned calculation & measurement of OTR that enables proactive oversight and predictive alerts to manage risk more effectively.

Outcomes

  • Reduced Exchange Fines And Suspensions
  • Lower TCO From Streamlined Implementation
  • Improved Transparency Into Desk And Trade Strategy Impacts
Intraday Regulatory Risk Mitigation

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Better Data, Better Insight, Better Compliance Outcomes

Intraday Risk Management - A New, Efficient Approach

Proactively Identify Compliance Risks
Predictive analytics and automated intelligent alerting combine to identify and triage areas of risk.

OTR Summary


Examine Which Desks and Strategies are Most Contributing to Risk
Multi-dimensional analysis by venue, symbol, transaction type, etc. quickly pinpoints key risk contributors so they can take action.

OTR Activity


Evaluate Risk Level to Determine if Further Action is Required
Assess the impact of corrective actions to the overall risk level and take further action, if required.

OTR Volume

Learn why financial leaders chose Corvil Schedule a Demo

Key Capabilities

Corvil Intelligence Hub applies machine learning to analyze firm-wide, per-instrument OTR metrics, at scale. It continuously anticipates end-of-day ratios and proactively identifies compliance risks that require action. Diverse teams can perform multi-dimensional data analysis (e.g. across venue, market, instrument, and participant type) to improve decision-making and track the impact of corrective actions.

CONTINUOUS OTR ASSESSMENT

Live assessment of firm- wide, per-instrument ratios for each venue (correlated by dimensions of market, instrument, and participant type) delivered by operational analysis of order flows from every desk, client and strategy.

Delivers early warnings when Order to Trade Ratios are likely to exceed end-of-day venue limits. Built-in alert management minimizes alert noise and provides complete control over alert propagation.

ACTIONABLE INSIGHTS

Immediate insight into trading desks and activities contributing to high ratios simplifies investigation and streamlines collaboration between compliance, business, and technology teams to eliminate risk more effectively.

FULLY TRACEABLE & AUDITABLE

Complete, forensic audit- trail record of all order lifecycle messages and flexible data exploration, pivoting, correlation, and visualizations simplifies inquiry response and improves productivity.